Climate Change, Homeowner's Insurance, and Emergency Management - Study, the official text

WES MOORE, Governor                             Ch. 697

Chapter 697

                   (House Bill 1219)

AN ACT concerning

Climate Change, Homeowner’s Insurance, and Emergency Management – Study

FOR the purpose of requiring the University System of Maryland to conduct a study to
         evaluate the relationship between climate change, homeowner’s insurance, and
         emergency and disaster preparedness; and generally relating to a study on the
         relationship between climate change, homeowner’s insurance, and emergency
         management.

         SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That:

         (a) The University System of Maryland shall conduct a study to evaluate the
relationship between climate change, the availability and price of homeowner’s insurance,
and emergency and disaster preparedness.

         (b) The University System of Maryland shall conduct the study required under
subsection (a) of this section in coordination with and oversight by:

                  (1) one member of the Senate of Maryland, appointed by the President of
the Senate;

             (2) one member of the House of Delegates, appointed by the Speaker of the

House;

             (3) the Department of Natural Resources;
             (4) the Department of the Environment;
             (5) the Maryland Department of Emergency Management;

             (6) the Maryland Insurance Administration;

                  (7) a County Emergency Manager, appointed by the Maryland Association
of Counties; and

                  (8) a Municipal Emergency Manager, appointed by the Maryland
Municipal League; and

                  (9) a representative of the Independent Insurance Agents of Maryland,
designated by the Independent Insurance Agents of Maryland.

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Ch. 697              2026 LAWS OF MARYLAND

        (c) The study shall evaluate:

                  (1) the extent to which climate change has contributed to the decreasing
availability of and increasing costs associated with homeowner’s insurance;

                  (2) the impact of recent and future changes in federal policies and grant
funding streams related to disaster preparedness, response, recovery, mitigation, and
resilience;

                  (3) how federal funding has supported emergency management
capabilities across the five emergency management mission areas identified by the Federal
Emergency Management Agency; and

         (4) existing local resources or reserve funds available for disaster recovery

needs.

         (d) (1) On or before January July 1, 2027, the University System of Maryland
shall submit its findings and recommendations to the General Assembly, in accordance
with § 2–1257 of the State Government Article.

         (2) The report required under this subsection shall:

                           (i) include an overview of the current state of the National Flood
Insurance Program, Community Rating System, and the private flood insurance market;
and

                     (ii) make recommendations on:

                                    1. how the State can incentivize residents to invest in
improvements to protect homes or mitigate damage from extreme weather events, using:

                     A. tax credits;

                     B. waivers;

                     C. grants;

                     D. loans; or

                     E. free inspections of structural enhancements by municipal

or State officials;

                                    2. potential modifications to the Insurance Article to better
ensure that insurers adequately adjust rates for policyholders who:

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          WES MOORE, Governor                         Ch. 697

                                    A. have invested in improvements that have been proven to
enhance resilience to severe weather; or

                                    B. are located in an area where improvements have been
made to local infrastructure or local building codes that reduce risk to the insured home;

                                    3. best practices for funding emergency management
capabilities based on an evaluation of similar practices in other states;

          4. potential modifications to § 14–110.5 of the Public Safety

Article;

          5. recurring dedicated funding mechanisms;

          6. annual per capita funding levels; and

                                    7. allocation ratios between emergency management
programing, including training and staff, and disaster response funds for recovery
assistance.

         (e) Notwithstanding any other provision of law, up to $100,000 of the money in
the Strategic Energy Investment Fund established under § 9–20B–05 of the State
Government Article is authorized to be used by the University System of Maryland to
conduct the study required under subsection (a) of this section.

         SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June
1, 2026.

Approved by the Governor, May 26, 2026.

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